Surge in Diesel Prices Pressures Tour Bus Industry, MATA Warns

KUALA LUMPUR – The recent hike in diesel prices by 80 sen per liter has placed a critical strain on the tour bus industry, potentially threatening the nation’s momentum as it prepares for Visit Malaysia Year (TMM) 2026.

The Malaysian Tourism Agency Association (MATA) issued a statement today highlighting that the sudden increase in fuel costs has directly impacted the operational expenses of tour bus operators, many of whom are still in a recovery phase following the pandemic.

Critical Operational Strain

MATA President, Mohd Khalid Harun, emphasized that the tour bus sector is entirely dependent on diesel, particularly for long-distance travel involving domestic and international tourists, school trips, corporate groups, and large-scale event management.

“The 80 sen per liter increase in diesel prices puts very serious pressure on tour bus operators because it directly raises the cost of every trip and jeopardizes the operational stability of companies,” Khalid stated.

He further explained that most bus bookings are made well in advance at agreed-upon rates. This leaves operators with little to no room to adjust prices when sudden cost spikes occur, leading to thinning profit margins or, in some cases, total losses that severely affect company cash flow.

Rising Costs Across the Board

In addition to fuel, operators are facing increased costs in other areas of maintenance, including vehicle upkeep, driver wages, toll fees, permits, and insurance premiums—all of which have seen an upward trend following the diesel price hike.

If the situation persists, Khalid warned that operators might be forced to raise rental prices. Such a move could have a ripple effect on the tourism sector, school excursions, and corporate events.

Impact on Visit Malaysia Year 2026

The surge in transportation costs could also hinder the country’s efforts to strengthen its tourism appeal for the upcoming Visit Malaysia Year 2026.

“Malaysia is actively promoting TMM to attract more international tourists. However, if tourism transportation costs continue to rise, it could undermine the competitiveness of the country’s travel packages,” Khalid added.

MATA is calling on the government to investigate appropriate measures to assist tour transportation operators, including the possibility of support mechanisms to ensure the survival of the industry and the overall stability of the national tourism sector.